TIF reform would deliver property tax relief

Property tax relief is a top priority for Senate Republicans this legislative session. I’m sponsoring one such bill, SB 2, which reforms how tax increment financing (TIF) districts sunset — if they ever do — in order to lower property taxes for all local taxpayers. Essentially, the bill rewards taxpayers who contribute to economic development over the span of a TIF project.

Tax increment financing districts are subsidized by taxpayers outside the district over the decades-long life of a project, which increases residents’ taxes and takes money away from schools and other services. I support TIFs, but they need to be transparent and not abused.

Senate Bill 2 does not stop the development of TIFs. That choice will still be up to local governments. However, TIFs should not be used to inflate city budgets at their conclusion, increasing taxes after that point. Under SB 2, TIF districts would become standard parts of a city’s overall tax base when they are sunset, instead of entering as newly taxable property.